DeFi Reaches Historic Milestone As Value Locked Reaches $2 Billion
Quick Take
- There is now over $2 billion locked within the DeFi ecosystem, marking an all-time high.
- Compound continues to dominate with over $650 million locked.
Decentralized finance is the application and integration of blockchain and cryptocurrency within the financial sector. One of the numerous benefits DeFi offers is the ability to eliminate the middleman and facilitate trust-less transactions.
The decentralized finance ecosystem has reached a new milestone as over $2 billion is now locked away within the ecosystem for the first time, according to DeFi Pulse. The Crypto Associate previously reported as the value locked in DeFi approached $2 billion at a rapid pace.
Despite seeing substantial growth last year, the DeFi ecosystem has exploded in 2020 as the value locked has already grown by over $1.3 billion. Interestingly, nearly $1 billion of this growth came in the last two months alone.
Compound Maintains Its Stronghold
According to DeFi Pulse, the lending decentralized finance application currently boasts a 32.7% dominance with over $655 million locked away. Compound generated crypto buzz as it overtook Maker as the largest decentralized finance application by value locked.
Compound’s COMP token also created a crypto frenzy as the token quickly soared to over $400. While the token is now trading at $190, COMP’s massive rally may be representative of the growing interest in decentralized finance.
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